Chinese securities firms are granted approval for the first time to offer comprehensive virtual asset trading services in Hong Kong

On June 25, 2025, Guotai Junan International Holdings Limited announced that its wholly-owned subsidiary Guotai Junan Securities (Hong Kong) Limited has received approval from the Hong Kong Securities and Futures Commission to upgrade its existing Type 1 regulated activity license to provide virtual asset trading services. This marks the company as the first Chinese broker approved to offer comprehensive virtual asset trading services in Hong Kong, opening up channels for clients to directly trade mainstream cryptocurrencies such as Bitcoin, Ethereum, and Tether.

After the announcement, the market reacted positively. The stock price of Guotai Junan International in the Hong Kong market opened with a surge of over 80%, and at one point during trading, the increase exceeded 100%, reflecting investors' confidence in this strategic breakthrough. At the same time, the stock price of Huashan Co., which holds a large number of circulating shares of Guotai Junan International, also rose accordingly, with an intra-day increase of over 8%, showing the market's widespread optimism towards the virtual asset trading sector.

This license upgrade is an important embodiment of Hong Kong's strategy to build a global core hub for virtual assets. Since the release of the "Hong Kong Virtual Asset Development Policy Declaration" in 2022, Hong Kong has established a regulatory framework for digital assets that balances innovation and risk prevention through a series of measures. In February 2025, the Hong Kong Securities and Futures Commission released a regulatory roadmap that further clarified the policy direction to support the development of the virtual asset market. In May, the passage of the "Stablecoin Ordinance Draft" was seen as a key step for Hong Kong to integrate into the global digital asset ecosystem.

Guotai Junan International has been granted a license that allows it to provide virtual asset trading services, professional advice, as well as the issuance and distribution of virtual asset-related products, including over-the-counter derivatives. This makes it the first Hong Kong-based Chinese brokerage capable of offering comprehensive virtual asset trading services, covering multiple dimensions such as brokerage services, consulting services, and product issuance.

In fact, the company has long begun its layout in the field of virtual assets. In 2024, the company launched structured products based on virtual asset spot ETFs and was authorized to carry out the business of introducing agents for virtual asset trading platforms. In the first half of 2025, the company further obtained permission to distribute tokenized securities to clients and provide related professional advice, while also launching its digital bond issuance business. This license upgrade achieved a closed-loop layout from product design, trading services to consulting support.

Industry analysts believe that more brokerages with international business subsidiaries are expected to complete the upgrade to Class 1 licenses in the future, entering the virtual asset trading service sector and further improving the market ecosystem in Hong Kong. Leading brokerages with a strong customer base entering the market will promote the continuous development of the cryptocurrency and virtual asset trading ecosystem in Hong Kong.

Globally, traditional financial institutions are entering the virtual asset industry with unprecedented breadth and depth. In the brokerage field, some brokerages have partnered with virtual asset trading platforms to offer clients cryptocurrency trading capabilities. In asset management, several internationally renowned institutions have launched Bitcoin spot ETFs, and Hong Kong institutions have developed new products such as tokenized currency funds. In investment banking, virtual asset companies are going public one after another, and industry mergers and acquisitions are active, bringing new opportunities for brokerages.

Although the virtual asset market has a broad outlook, its high volatility also places higher demands on investors. The professional consulting services provided by Guotai Junan International will help clients better understand market dynamics and make rational investment decisions. The company also reminds shareholders and potential investors to act cautiously when buying and selling the company's securities.